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Flashcards in Property Transfer Questions Deck (2):

When u r transferring property to a soley held corporation and you get boot in exchange, what matters?
The boot
The FMV of the Property
The Adjusted Basis of the Property
The FMV of whatever else you received besides the boot
The Cost Basis of whatever you received besides the boot

The boot is all the gain that's recognized assuming (I think) that the total MVU + cash is more than what you gave up.

So if you give up 50 (adjusted basis) and get a total of 100 (40 cash and 60 MVU stock) you recognize all 40K.

It says "to the extent of cash received" but what if you give up something worth 25K And only get 10 cash and 5 in stock.


Look up amoritzation of goodwill on acquired business.
Is goodwill a capital asset? No, but the gain on it is treated as Section 1231 property (huh?)
It's an intangible asset and disposition of a section 197 intangible is subect to recapture rules under section 1245.

Need a lot more study on this